Uranium Companies

There are very few pure uranium companies. Most companies, especially the small exploration type, are active in more than the uranium industry. This blog makes no attempt to guage the percentage of a companies activity that are related to the finding, mining or processing of uraniun. They all do, however, have some uranium activities (to the best of our review).

Merv's Uranium Indices

I have developed two Uranium Indices. They each have the same component stocks but are calculated using different methodologies. My weekly Index is based upon the average weekly performance of the component stocks. My daily Index is based upon the daily average of the component stocks open, high, low and close prices along with the daily average volume of all component stocks.

Click on the chart or table to enlage the view.

19 October 2010

Merv's Daily Commentary 19 Oct 2010

After The Close, 19 Oct 2010

Merv’s Daily Uranium Index
Market Data

Open: 185.29
High: 187.85
Low: 179.76
Close: 182.81
Volume: 7433

Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.

What a day? The general markets dropped a point or two, well maybe more than a point or two, taking the uranium stocks with them. Silver was the hardest hit with a drop of over 4% but that’s another story. Nothing much was happening on Monday. The Daily Index was very slightly higher and the Stochastic Oscillator continued to slide minimally. Today, it all turned around. However, this one day still did not turn any of the indicators negative. The worst that has happened, so far, is that a few of the indicators have crossed below their trigger lines while the indicators remained in their positive zones.

The Merv’s Daily Uranium Index closed lower by 3.68 points or 1.97% for its worst one day decline in maybe about 4 months. There were still 12 winners, 32 losers and 6 stocks sleeping through it all. Cameco lost 2.9%, Extract gained 1.3%, Fronteer lost 2.9%, Paladin lost 4.5% and Uranium One lost 0.8%. The best winner of the day was Pele mountain with a gain of 23.5% while the loser of the day was Energy Fuels with a loss of 16.4%. Market Vectors Nuclear Energy ETF lost 1.1%.

On the intermediate term all is still well. The Daily Index remains above its positive sloping moving average line and the momentum indicator remains in its positive zone. It has once more dropped below its overbought line but is still above a support level established over the past few declines. It has also broken very slightly below its trigger line although the trigger is still in a positive mode. The momentum indicator remains above its up trend line but that may not last. The volume indicator remains in a positive mode and is above its positive trigger line. For now the indicators still sum up towards a BULLISH rating. The short term moving average line continues to confirm the rating.

On the short term the Daily Index just touched the moving average line but closed above the line, which remains in a positive slope. The momentum indicator has just inched below its up trend line but still remains above its recent support. It has also just dropped below its overbought line and is below its negative sloping trigger line. The daily volume action continues to provide a mixed message and today was on the high side with a negative market, not usually good. Anyway, for today the indicators are still rating the short term as BULLISH but things are heading swiftly towards the negative (but not quite there yet). The very short term moving average line continues to confirm the rating.

As for the immediate direction of least resistance, I guess I’ll have to go with the down side as everything seems to be heading in that direction.

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